Miss Out On Buying The Secret Streeterville Hideaway? Rent It For $2K A Month Instead: 211 E. Ohio
We’ve chattered about this 1-bedroom in the Grand Ohio at 211 E. Ohio in Streeterville several times in the last few months.
After being on and off the market over the last several years, it sold in late November 2012 for $229,000, including the parking.
See our early December chatter about its sale here.
It recently came back on the market as a rental for $2,000 a month with the parking extra.
If you remember, it was just 700 square feet, but has a unique 400 square foot private walled in terrace.
The units on this floor are also the few in the building that actually have in-unit washer/dryer.
The kitchen has white cabinets and white appliances. The rental listing says that the new owner has ordered stainless steel appliances for the kitchen. The bathroom is also all white.
The bedroom has a Murphy Bed already installed. The unit is apparently available furnished or unfurnished.
There is no central air- but there are wall units.
Is $2000 a month the going rate for 700 square foot Streeterville 1-bedrooms?
You can see pictures of the unit here.
Unit #517: 1 bedroom, 1 bath, 700 square feet
- Sold in June 1999 for $152,000
- Sold in May 2001 for $245,000 (doesn’t look like it included any parking)
- Originally listed in September 2012 for $257,000 (parking $30k extra)
- Reduced
- Was listed in October 2012 at $247,000 (parking $30k extra)
- Sold in November 2012 at $229,000 (parking included)
- Currently available for rent for $2000 a month (parking is extra)
- Assessments of $455 a month (includes doorman, cable, pool, exercise rooms)
- Taxes of $2261
- No central air- wall units only
- Washer/Dryer in the unit
- Bedroom: 11×15
- Livingroom: 15×16
- Kitchen: 7×10
Unit 1714 with parking and 735 sq ft rented at $1900 – the highest rent/SF looks like to me – so this is a bit high.
BTW, if they get $1800/month with 100% occupancy then they achieve a 6% return on assets. Not that good in my opinion.
“BTW, if they get $1800/month with 100% occupancy then they achieve a 6% return on assets. Not that good in my opinion.”
really? would you rather have a 10yr T-Note at 1.72%?
So chatterati, if one has say 300K (cash) and wants to buy something to rent out in Chicago what is a good neighborhood to purchase in? Also assuming one does not want headache of being a landlord, are there companies that manage it for you?
“So chatterati, if one has say 300K (cash) and wants to buy something to rent out in Chicago what is a good neighborhood to purchase in? Also assuming one does not want headache of being a landlord, are there companies that manage it for you?”
If you don’t want to manage a property but want exposure to real estate, buy a reit
Thanks Oilc. I want to buy a property and am not interested in funds. I am looking for recommendations for where to purchase.
Reits are mostly stocks traded on exchanges not funds, although there are many different ways to invest in reits. One of my favorites is the monthly pay, symbol O
“really? would you rather have a 10yr T-Note at 1.72%?”
I wouldn’t buy either. Considering the lack of liquidity in real estate and the headaches and the risk I prefer to buy closed end fixed income mutual funds or preferred stock funds or MLPs or mortgage REITs. And that’s where a lot of my money is. At 8%+ ROA real estate starts to look more interesting and you can find those deals.
“So chatterati, if one has say 300K (cash) and wants to buy something to rent out in Chicago what is a good neighborhood to purchase in? Also assuming one does not want headache of being a landlord, are there companies that manage it for you?”
For 300K you’re probably not going to be able to find an economical property manager. Get a 10 unit building around $1 MM and you can pay them around 5% to manage it. As for neighborhoods…I’m finding interesting stuff around Western in West Town but everything decent is getting 2 – 6 bids overnight.
“really? would you rather have a 10yr T-Note at 1.72%?”
My Mexican drug cartel fund (Symbol:MDC) pays about 37% p.a.
Gary, what about University Village area? Thinking renting out to UIC students/hospital staff.
My friend bought a three flat in Berwyn recently. Tenants were already in place and it cost her only $125k. She comes out a few hundred ahead each month after taxes/expenses/mortgage. I would start small and buy a stand alone building so as not to be beholden to association rules.
Gary I completely agree with you, the return here isn’t worth the risk or, in my opinion, the hassle of renting a condo. I think when I ran numbers on this place after Sabrina first posted, I came out to $1600/month w/landlord insurance and assuming that the taxes won’t be reassessed higher after purchased (ha!) and that a property manager isn’t taking a cut. Assuming this goes for $2000 with parking , that’s a 20% return, which isn’t bad, but can be easily diminished with vacancy and other maintenance costs. REITs definitely a better option right now imo. That $46k downpayment could return a lot and provide liquidity vs being stuck in a condo equity.
Sonies – it’s funny you mention “O”, as I was just researching that one last night!
So I ask everyone here, what *IS* the ideal return for condo investments given the risks?
“At 8%+ ROA real estate starts to look more interesting and you can find those deals.”
Only go lower if you have a lot of risk tolerance, imo.
“Gary, what about University Village area? Thinking renting out to UIC students/hospital staff.”
Well, I love University Village as you know (lived there for 10 years) and you can keep it rented out exactly as you plan. The problem is that I don’t often see the 8%+ returns there that I would want to see. However, some of the short sales there do offer that.
Thanks Gary.
Jenny, how is the neighborhood?
“Assuming this goes for $2000 with parking , that’s a 20% return, ”
can you show those numbers, please? tks.
You can buy some suburban units for 1/4 the price of this, that fetch 1/2 of the rent, so mathematically speaking this buyer isn’t doing that great.
“can you show those numbers, please? tks.”
He’s doing ROE, assuming ~80ltv.